Transcription of 14: Correlation - Powering Silicon Valley
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14: Correlation - Powering Silicon Valley
Page (C:\data\StatPrimer\ )14: CorrelationIntroduction | Scatter Plot | The Correlational Coefficient | Hypothesis Test | Assumptions | An Additional ExampleIntroduction Correlation quantifies the extent to which two quantitative variables, X and Y, go together. When high values of Xare associated with high values of Y, a positive Correlation exists. When high values of X are associated with lowvalues of Y, a negative Correlation data set. We use the data set to illustrate correlational methods. In this cross-sectionaldata set, each observation represents a neighborhood. The X variable is socioeconomic status measured as thepercentage of children in a neighborhood receiving free or reduced-fee lunches at school.
Page 14.5 (C:\data\StatPrimer\correlation.wpd) Interpretation of Pearson’s Correlation Coefficient The sign of the correlation coefficient determines whether the correlation is positive or negative.
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